PARIS, July 4 (Xinhuanet) -- British Prime Minister Tony Blair said the current internal crisis in the European Union (EU) triggered by the French and Dutch rejection of a proposed constitution was one of political leadership, according to a column in Monday's Le Figaro newspaper.

    "The crisis we face is not one of political institutions. It is a crisis of political leadership," Blair wrote in the column, according to an advance English-language transcript provided by his office.

    Britain this month took up the rotating, six-month EU presidency.

    "The purpose of political leadership is to get the policies right for today's world. For 50 years Europe's leaders have done that. Now, almost 50 years on, we have to renew," he said.

    Blair also called for the liberalization of the EU economy while keeping the principles of its existing social security regimes intact.

    He reiterated Britain would not bow to demands from France and other EU countries that it give up its multi-billion-euro rebate from the EU budget until further reductions are made to costly EU agricultural subsidies which greatly benefit French farmers.

    "Europe is in the midst of a profound debate about its future,"the British prime minister said, adding, "It's a debate, however, that should not be conducted by trading insults. Nor should there be an attempt to shut off new ideas by representing those who want change as intent on betraying the European ideal."

    Blair said what is needed is a Europe that keeps its "caring social dimension" while creating jobs and prosperity.

    "We have to modernize our social model," he wrote.

    "We need to do more -- and faster -- on jobs, labor market participation, school leavers and lifelong learning. We need more investment in knowledge, in skills, in active labor market policies, in science parks and innovation, in higher education, inurban regeneration, in help for small businesses." Enditem